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How Craig Whyte saved Rangers from administration

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Craig Whyte saved Rangers from going into administration in May 2011.

When the former billionaire handed over his pound coin to Dave Murray he took on responsibility for £18m of bank debt to Lloyds and also responsibility for the wee tax case which was close to £3m.

Whyte’s intervention prevented Lloyds from forcing administration and allowed Ally McCoist to compete for the golden egg of Champions League football.

The former Question of Sport skipper replaced Walter Smith shortly after Whyte entered the blue room and immediately set about a spending spree that brought Lee Wallace, Juan Ortiz, Brad Mackay and Carlos Bocanegra to Ibrox.

Details of Whyte’s heroic intervention were revealed when the former Rangers Finance Director Donald McIntyre gave evidence.

Under questioning from Donald Findlay, McIntyre revealed the full extent of the cash crisis that the club were facing despite playing in the Champions League earlier that season.

While Whyte paid off the debt to Lloyds it’s unclear why HMRC  didn’t push for payment for their £2.8m while the club continued to throw money at footballers.

This morning McIntyre revealed that the club had received a tax demand from HMRC in November 2010. In March 2011 a licence to play in UEFA competition was granted after the club declared that they had no overdue social payables (tax bills).

When McCoist’s side failed to reach the 2011/12 Champions League group stage administration and liquidation were only a matter of time away.

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